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Dave: This is the Idaho Real Estate Buzz. I'm Dave Burnett. He is Thom Doleman, the co-owner and designated broke of Core Group Realty. Coregrouprealty.com. That's the website for you to go to or call 933-7777. Keep that number in mind whether we're talking to Michelle Guthe and you want to contact her, if you don't remember her number you can always call 933-7777 and get all of the preferred folks that you deal with.
Thom: Yeah, we'll get you connected, for sure.
Dave: Well, one of the things that we always like to touch on right off the bat and that is the tab which is called Coming Soon.
Thom: Coming Soon, my favorite tab, is a pre-peak into the listings that will be coming onto the market fairly soon and you get your first glimpse at it. You get the first look at it before anybody in the public gets to see it on the MLS, so ...
Dave: Now, since we have met last Saturday, you have three brand new ones.
Dave: Is that showing that maybe the market's starting to loosen up a bit as we head towards spring?
Thom: I hope so. It's typical for it to loosen up a little bit in that February-March time frame for the spring, you know, getting into spring and stuff like that.
Dave: Holidays are over.
Thom: Holidays are over, winter's kind of starting to let up a little bit.
Dave: Keep your fingers crossed.
Thom: Exactly, so, yeah it is traditional to kind of see that release and so we're really super excited about yes, starting to see that activity starting to happen again, especially with our current low inventory on the marketplace. It's still at all time lows and still a great time to get your house listed and get top dollar for it.
Dave: Just as a sign that spring is close by, my daffodils are beginning to grow.
Thom: Are they starting to grow up a little bit?
Dave: Crocuses and daffodils are showing in my yard, so-
Thom: Yeah, I was just talking to someone this week that she said the same thing for her flowers and we were talking about the fact that we might want to like urge them to kind of stay in a little bit longer just in case we have another freeze through.
Dave: Something bad. Well, let's talk about these Coming Soons as we head in towards springtime. What have you got?
Thom: Yeah, yeah, let's start out in Caldwell. We have 25100 Elk Way. It's a four bedroom, two and a half bath with a three car garage. 2560 square foot, so a nice big house. Two story, and it's on 1.25 an acre. This house is situated out there kind of of near Middleton, actually. It's in the Middleton part of Caldwell on the side of the freeway and stuff. Kind of Emmett Road and Purple Sage Road out there, so great location, big house, big lot, for $320,000, is what that's coming on for, so it's got garden space ready for horses, hardwood floors throughout the house, covered patio, breakfast bar, RV parking.
Thom: Really kind of a lot of conveniences for this house.
Dave: How many bedrooms was this one again?
Thom: This was four bedrooms, two and half baths.
Dave: Okay, so a nice large family can move into this and enjoy this home.
Thom: Yeah. Yeah, yeah. For sure. It's got lots of space for everybody to run around and do their thing in with that over an acre on the property, so ...
Dave: So what's the official address of this one again?
Thom: It was 25100 Elk Way in Caldwell.
Dave: Perfect so you might want to check that out. It is on the Coming Soon tab if you're looking to ... It's funny, that used to be way out in the country.
Thom: Now, it's just a hop, skip, and a jump.
Dave: Just on the outskirts of town.
Thom: Exactly. Exactly, and quick and easy access to the freeway right there in that neck of the woods, so you're convenient to almost anywhere, so ...
Dave: It is, and when you're that close to the freeway, I mean if you work in downtown Boise it's not that far to commute to get there to get into work.
Dave: I was talking to somebody earlier this week who has just moved up from San Diego.
Thom: Oh yeah?
Dave: And she's saying, "Oh, man. It's so nice. You bought a place just right out toward Middleton, I jump on the freeway, I'm downtown. I'm there quickly."
Dave: And I said, "That's quite a way." She goes, "Oh, no it's not. That's not bad at all."
Thom: Yeah, it's, you know, it's interesting listening to these people that move here from big cities and they're experiences with what we feel like is a long commute and to them it's like oh my gosh, that's nothing compared to what we have to commute and the traffic that we have to deal with in the big cities and stuff, so that's what I love about Boise and the Treasure Valley is it's still small enough that we don't have to deal with that, even though it feels like we do sometimes.
Dave: [crosstalk 00:04:19]. If you got a bad commute it's only because there's an accident up ahead of you. It's a normal commute. You're looking pretty good.
Dave: What's number two on the Coming Soon tab?
Thom: So number two we've got 2909 Northwest 12th Drive in Meridian, so that's over in the Eustic-Meridian Road area in the Southwick subdivision. This is a four bedroom, two bath house. 1900 square feet. Just a little bit over that with a three car garage and .26 of an acre that has irrigation on it. It's got granite in it, hardwood floors, that split bedroom design that everybody loves and tiling flooring in the bathrooms, dual vanities, so this is right in the middle, coming live in the middle of March and they don't quite have a price on it just yet. They kind of are still in that coming soon phase where their still kind of debating over some pricing so I don't have the exact price on it but it is definitely a house worth checking out on the Coming Soon.
Dave: Okay, and that's on 12th Street in Meridian or 12th-
Thom: 12th Drive. So 2909 Northwest 12th Drive in Meridian.
Dave: All right.
Thom: It's right there at Eustic and Meridian Road.
Dave: You know the nice thing is too if you're sitting at home you can just type in Google Earth and go take a look at the property [crosstalk 00:05:34] as well.
Thom: Oh, yeah, you can get a really good view of the overall area and stuff like that from those.
Dave: Which isn't a bad idea to do to spy on your prospective neighbors to see exactly what they got going on or not.
Thom: What's he have going on? Well ... I guess that's one thing you could do.
Dave: It is not a bad idea is going now why would they have that old bus in their backyard?
Thom: That's interesting.
Dave: Not that there is here, but I'm just saying.
Thom: Yes. Exactly.
Dave: You might want to do that. And number three on the Coming Soon.
Thom: Yeah, this one's in west Boise over there at Fairview and Cloverdale area. This is at 12168 West Holstead Street, so a great location, so convenient to Eagle Road and all those conveniences along there. It's a three bed, two bath, a two car garage with 1100 square feet, single level house, fully fenced with a great room and that's coming on at $175,000, so-
Thom: Yeah, one of those-
Dave: It's a nice starter home or investment home.
Thom: Oh, yeah, for sure. Great rental property, great starter home, as you said. Great opportunities for just different things, you know, and it's such a great area and the price point below 200,000 in the Ada county or Boise area specifically is so rare, so nice to find properties under that 200 for families or for anybody that's looking for, like you said, that starter home or investment home for rental, so definitely a great property that we're looking forward to getting that sold.
Dave: Nice, so three to look for on the Coming Soons. [inaudible 00:07:10] some statistics that you were showing me earlier as far as what's happening with real estate in the valley.
Thom: Yeah, yeah. Yeah, it was, well, we were kind of chatting this week with my team because I like my team to know kind of some of the statistics and so one of the statistics that we talked about was the average home price for single family home sales in our MLS, so we just looked at all the MLS numbers and it's the average sales price was at $230,000 for the Treasure Valley area, but then when you kind of look at Ada and Canyon county separately, Ada-Canyon for 2016 for single family homes came in at about 273 as the average home sale price whereas Canyon came in at 171, so ...
Dave: That's significant. That's a significant difference.
Thom: That's a significant difference, yeah. Yeah. The home prices in Canyon county are, you know, you can get more home for your price and so forth, so there's, yeah, that was an interesting statistic to share and to be able to see where the average home prices have lined up in 2016 and continue to project, they're projecting to continue through 2017 to grow even more, so as far as home prices going up, but then one of the other things that we just talked about is the growth in the Treasure Valley and how currently we're at a population of about 690,000 depending on which site you go on. They're all roughly averaging about 690,000 for the Treasure Valley and they're projecting continued growth of 1.2% for Idaho and even a little bit more for the Treasure Valley specifically but we've been averaging around that 1.2% for the last four or five years in Idaho for growth, so ... And one of the agents in our groups said that she actually heard a statistic from someone that said that they are projecting that in the next 10 years the Boise area will double in size.
Thom: Yeah. Which then lead to conversations about the new meat packing plant that's going out in Kuna and so that's drawing a whole bunch of attention to Kuna and so Kuna's one of the biggest growth areas that they're projecting for the Treasure Valley as well.
Dave: Would it be wrong for me to talk about building a wall here? [inaudible 00:09:32]. Correct me if I'm wrong, somebody explained to me once why Ada county, the property value's so much more than in Canyon county. What I had explained to me is because of the north end and the pricing of homes in the north end you get an 1100 square foot home going for $300,000 and the foothills.
Thom: Foothills are very popular.
Dave: Very expensive though.
Thom: View properties, very expensive. Very much so.
Dave: Whereas you get to Canyon county you don't have the foothills views, you don't have the north end-
Dave: So that is why if you were to take a home that's $200,000 in Canyon county, but it in the foothills, and suddenly it's a half a million dollar home.
Thom: Possibly. Potentially, depending on the house itself and so forth.
Dave: So am I off on that? Is that in part-
Thom: No, I think that's in part of what causes that little bit of fluctuation. There are more higher end homes just because of the fact that they are unique. You know, the prices.
Dave: Unique in location.
Thom: Yeah, unique locations demand a little higher price and stuff, so you're definitely going to find higher prices in areas closer to the downtown area because they're more desirable, so that desire raises the prices in those areas and stuff, so and the rarity of that-
Dave: And I say that because the people I've talked to, they live in Canyon county, very proud to be Canyon county, and proud of the fact that you can get a better deal there.
Thom: Exactly. Exactly. So yeah, there's great deals out. I mean and there's high end properties in Canyon as well, so we have one under contract right now in Goodson that's in that $800,000 price range for 40 acres with a nice 4000 square foot home on it, so ...
Dave: That's the deal. When you get a home that's a lot of money in Canyon county, you're getting acreage.
Thom: Yeah, usually you do.
Dave: Which, you know what? Man, it's hard to come by to get good acreage.
Dave: And if you get a good buy at it, grab it quick.
Thom: Exactly, so ...
Dave: Very good. Thom Doleman of course is the designated broker, co-owner of Core Group Realty, and that's the website, coregrouprealty.com, that you can go and take a look at these Coming Soon properties, three of them listed for you today, one in Canyon county, one in the Boise area, and one in-
Dave: Meridian, so kind of spreading them out for you. Check it out at coregrouprealty.com. 933-7777. You can call that number right now and find out more information on these properties. We'll continue on the other side here on 580 KIDO.
Dave: This is the Idaho Real Estate Buzz. I am Dave Burnett and every week we get a chance to speak with Michelle Guth with Diversified Mortgage an equal opportunity lender. Want to talk to you about something today, we were talking during the break that I said the word "sweat equity". It's not really sweat equity, but it's kind of that, in that there is a lot of people who will try to buy a home and there's things that need to be done to it, you know to get the house there. But sometimes its not going to make the bank happy to try to do that before hand.
Michelle: Thank You, glad to be here.
You're absolutely correct Dave we're running into a few issues as of late where again, just due to the lack of inventory we're finding some homes that have quiet a bit of the deferred maintenance on 'em. The clients are stating "you know we don't mind working towards that sweat equity", as you referred to it. But the problem is the house has to meet minimum lending standards for us to be able to issue that loan. What they don't take into account is I'm sure many of these people are capable of doing these repairs post closing. But we're lending on the collateral so we need that house to insure, or basically the buyer to ensure that, that house is up to minimum standards, when we lend on that collateral.
Thom: Mm-hmm (affirmative)
Dave: So let me set the picture about this. So lets say Thom has a house for me for two hundred thousand dollars, but it needs a new roof. So I come to you and you go to the bank and say "you know what the roof is ten thousand dollars loan me a hundred and ninety and I'll take care of the roof, that way the other ten thousand dollars". Which in theory works, but in practice does not?
Michelle: Correct. It would be nice if that were the case, but unfortunately again once we close on the loan I have no ability to ensure you are even going to get that work done.
Dave: Mm-hmm (affirmative).
Michelle: And if that roof fails and we end up with water intrusion into the property, its impacting our collateral. So again, that is why we have to meet the minimum standards to make sure that the property is at the level that it needs to be for us to lend on it.
I like to refer to this as the safety and soundness check of the house. So when we are going through homes with our buyers and so forth we always talk about "we are looking for safety and soundness issues". Things that will hurt the safety or prohibit the safety of the clients as well as the soundness of the house. The bank wants to know the house is going to be sound. It's going to survive ya know 10 years or even longer, for the life of the loan and so forth. So we really make sure we are looking for all those little items that are going to be safety and soundness issues that will prohibit the lenders from wanting to loan on the house.
Michelle: Correct. And it's not even just necessarily safety and soundness. It's what is the life of the loan or life of the house itself has to meet certain level of anticipated years left in the property. And we've had a couple of properties in the last twelve months where the house didn't even meet the minimum required (laugh) expectancy for how long the anticipate the house is going to stay standing. (laughing)
Thom: Stay Up.
Michelle: So there are big fixer-uppers out there and unfortunately those are not ones we are typically going to be able to lend on.
Dave: Let's run down some of the things it could be. I mentioned the roof and that's always one that the roof has to be in good repair to be able to get a loan on it. Foundation, that's another one I would assume.
Dave: Paint of a house, now would paint be one?
Michelle: Paints a big one for the government programs. So anything with exterior chip peeling paint wether it be on the house or out buildings. Even decking can be a problem for many of our government programs. VA, Rural Development, FHA they are all going to have issues with exterior chip peeling paint.
Even with conventional financing for example. That's not necessarily going to be called out, but if its in extreme disrepair where you are starting to get water intrusion. They can still even call it out on a typical conventional program.
Dave: Okay because you would think paint would be cosmetic, but if its a structural issue with the paint that's actually chipping off, that would be the difference?
Michelle: Correct. You are starting to get wood rot or you can literally get water intrusion into the house itself.
Dave: Mm-hmm (affirmative) Okay. What are some of the other things that would be safety and structural?
Michelle: We see things with leaking faucets. Where they will take care of even minor plumbing repairs. So again we don't want to see any leaking faucets, potential of maybe dry rot again. Broken cracked windows can be health and safety.
Thom: Windows are a big part of that. Just this week I was looking at an inspection report for some clients that had a bb hole, a bb-gun shot hole, in the window. Just pointed it out this is probably going to need to be (laughing) ...
Dave: Rough neighborhood.
Thom: This is going to need to be fixed before we can proceed to the appraisal process so.
Michelle: I think another good one you brought up is with the foundation. We call it wood to earth contact. With the movement of landscaping and such. As that dirt or the landscaping starts to get up against the property and you have the dirt hitting the siding versus being down at a certain level of the foundation. They are going to call that out as well.
Thom: Mm-hmm (affirmative)
Dave: Okay so basically these things, whatever the list of official things are, have to be done before the bank will even consider lending on them. So, it's not really something you could really knock off the price of the house to be doing yourself, if it's structural, if it's safety minded?
So what I would encourage you to do is talk to real estate agent and your lender and basically have a meeting of the minds to determine what items could we potentially do post closing and allow you to build that sweat equity, or Items that we're gonna need to have done in order for it to meet the appraisal requirements on the home.
Dave: Okay. I guess another one just popped in my mind is like insulation. It has to be up to a certain standard. You can't say I'll get it up to standard after the loan closes?
So for government programs, once again, the appraiser is going to poke there head up into the attic and they are going to look down in the crawl space. So when they're in attic they are looking, they're not necessarily up there measuring, you know the thickness of the insulation, but they're going to do visual check to make sure that it looks like it's up to par. If it doesn't they are going to call it out for further review.
Dave: So what kind of things are cosmetic that you could deffer until after the loan is closed?
Michelle: Poor condition of maybe carpet, where its stained up and just needs to be replaced.
Thom: Yeah. Need carpeting replaced.
Dave: The bank doesn't care about the carpet really.
Michelle: It's going to impact value potentially, but as long as it is not a health issue where you know it's so soiled that it could be a concern where it's a health issue. Then no.
If its just, you know, basically weathered carpet in essence. [crosstalk 00:06:17]. It's cosmetic in nature we're not concerned about that.
Even you know a terrible paint job inside the house that's going to be cosmetic in nature.
So the hot one's are water, roof, crawl space. I think right now the one thing I would encourage a lot of our homeowners out there wether you are buying a house or not, get down and check out your crawl space, right now, because with ...
Thom: Mm-hmm (affirmative)
Michelle: the level of water that we had this year we are hearing a lot of reports of standing water in the crawl space. You want to get that remediated right away, so that you can avoid the potential of mold. So I would definitely check your crawl space wether you are thinking of buying or selling, right away.
Thom: It's always a good idea during these unusual weather patterns. Like what we had with the snow and stuff too. Make sure that you do have you know, maybe every two years, have an inspector come through the house and just double check it just for your own safety. To make sure that there is nothing that has happened that could cause any kind of health issues and stuff.
Dave: I know we've had Stan in here before talking about and he always mentions when you open the crawl space, it should smell like dirt. It shouldn't smell mildewy.
Thom: Yeah (laughing) Exactly.
Dave: I guess that is one of the things. While we are on this let me bring this up as well because there is a warning out right now for Treasure Valley that they will be coming. That is those who are going to come and tell you, 'We're here to repair your driveway". "We're here to repair your roof" because of all the damage. There are scam artists who will be hitting the Treasure Valley this spring saying that they are going to do it. They will come in, they'll put down a surface on it that is not really reliable and you'll be out thousands of dollars. The bank would not loan on the job that they will do. Fair Warning make sure you check for licenses and make sure you check references don't just take somebodies word who's knocking on your door there.
Is there someplace we can go, Michelle, to kind of find out more when it comes or is it just a real estate agent would be the best way to go to find out what would be considered cosmetic and what would be considered structural?
Michelle: Well as a lender those are things I typically touch on when I'm doing my credit approval, when I'm discussing the type of loan program and they are out looking at homes. I say these are the key things you need to look for when you are viewing the properties if you know it has these issues, it's not going to meet the financing type that we are looking for. We're gonna have that same discussion with the realtor. The majority of agents are very well versed on this and know when they are going to pose an issue. But again, depending upon the program that we qualify them for they need to be looking for those warning signs to make sure it's not going to be a program issue.
Thom: Exactly. I have these conversations with our agents often to make sure that when you are out showing property and with your clients make sure you are looking for these things to kind of circumvent that a little bit and educate the clients so that they know when it comes time for that this may be an issue.
Michelle: I think one other item that you can keep your eye out for is exposed wire. We are seeing quite a bit of exposed wiring as well. So if you have a basement for example that's maybe not even an area that they are habitating but it does have exposed wiring that can likely get called out on an inspection and a appraisal. So make sure you don't have exposed wiring and missing outlet covers. It amazes me when still get reports and we are missing a ten cent outlet cover, now I have to send the appraiser back out. So make sure you have your outlet covers, your smoke detectors installed and no exposed wiring in the property.
Dave: Okay then now the exposed wiring. Like in a basement that's unfinished that needs to be covered before the loan can be done?
Michelle: Potentially. It depends on the type of wiring, where its at. But yes, ideally exposed wiring is frowned upon.
Dave: Huh I did not know that.
Thom: Exactly, yes. I've seen inspection reports that show exposed wiring like hanging in the garage. Like they took light fixtures down and they just left the wires kind of hanging. They cap 'em but they are just kind of hanging and not in a box and so forth. So just various little things.
Dave: They gotta be in a box with a lid put on 'em.
Thom: Crawl spaces with electrical outlet wires ready to put in an electrical outlet in for some reason, but the wires are just kind of hanging there with (laughing) nothing to protect them and stuff in the crawl space. I've seen that in reports as well.
Dave: Well, Michelle, if somebody wants to get a hold of you. Maybe they want to start that process of getting a loan or find out if they are even eligible for a loan. Which we've talked about before. You may be surprised. You may be eligible to get that loan. How do they get a hold of you?
Michelle: Stop by our office. We're just off of Marigold and Glenwood, or give us a call at 853-7878, or visit our website which is dmgloans.com
Dave: Very good Michelle Guth with Diversified Mortgage. Well continue on the other side here on 580 KIDO
Dave: This is the Idaho Real Buzz. I'm Dave Burnett along with Thom Dallman. He is the co-owner designed broker of Core Group Realty. coregrouprealty.com is the website. 933-7777, that would be the phone number for you to call if you want more information. There's somebody standing by right now, customer care agent that can help guide you through the website, can help give you more information. They're not a licensed real estate agent but they know a few and they can get you in touch or just to answer those questions.
Thom: Exactly. We like to make sure that people are getting their questions answered whether it is real estate related or whether it's just how to use our website. Our website is pretty user friendly and intuitive and easy to navigate so there's not usually a lot of questions that pop up on that but it's nice to know that there's someone there to help out. For sure.
Dave: Or if you want to make that appointment, you see something you like, you'd like to make an appointment to go actually see it in person, they can take care of that for you. 933-7777.
Thom: Speaking of appointments, let's talk about that.
Dave: I want to talk about two angles on this. One is as a perspective seller and one as perspective buyer and that is accessed homes.
Thom: Correct. Let's talk about that.
Dave: I'd like to think that, "Look at that house. I'd like to go see it right now."
Dave: Doesn't always work that way.
Thom: It doesn't always work. We've got varying access levels to homes on the marketplace all the way from the vacant homes that you can pretty much show up whenever you want and just use the lock box to get into all the way up to homes that have tenants that may require a 24 hour notice to get in to access. We even have a few homes out there that have tenants that the sellers don't want to bother the tenants so they only will allow you to drive by the house, view it from the outside, write an offer on it contingent upon viewing the inside of the house during your inspection time frame.
Dave: As an agent, that's got to be tough.
Thom: That's really tough.
Dave: It's like, "Hey, we'd like to buy it without seeing it."
Thom: Exactly. Exactly.
Dave: That's tough.
Thom: Yeah! I think it's tough for the sellers to get the house sold that way as well as for buyers to obviously be able to invest that money into it and so that's typically what ends up happening is those type of homes, they get a little bit less value for it because of the access ability of it and so it tends to go more towards those investors that are going to buy those properties to keep those renters in there and invest in the property. We all know the investors need to buy at a good rate where they can make some money on it and have a positive cash flow on it and stuff like that so ...
Dave: Let's go to the beginning here and talk.
Dave: Let's talk about the empty house.
Thom: The vacant house.
Dave: Is there a different between a new construction and one that's existed prior. If it's empty, it's pretty much the same thing?
Thom: Yeah, pretty much as far as access accessibility of vacant houses, of vacant house. The access to it is via the lock box. It's usually on the front door. A real estate agent, we get finger-printed, we get licensed, we get background checks and stuff like that so it's just not like you're giving access to just anybody. It is a qualified real estate agent that has gone through all that that gets access to those.
Dave: Whoever the owner is, they have a way of knowing who's been in the house.
Thom: Correct. Correct. That's what the use of those lock boxes are for. It's to-
Dave: But it's not like the old days where you just leave the card, is it?
Thom: You know what, people still do. People still leave cards to just let the home seller know that they've been through. They usually more leave those for homes that are occupied by the seller just so that they know that they've been through because that's frustrating to a home seller to get that call to show the house, leave the house, come back 45 minutes later or an hour later just now sure like, "Did they come through the house? I can't tell if they came through or not." That's a courtesy thing that has evolved through the years to be more of a courtesy to the seller to let them know that we came through so ...
Dave: Let's move on then. Getting into a new construction or just a vacant home, fairly easy to to do-
Thom: Fairly quick, fairly easy-
Dave: Within a couple of hours, you're in.
Dave: If somebody is occupying the home, let's say it's owned or occupied, I'm selling my house. Thom, you call me then and say, "Hey Dave. We got somebody who wants to see the home. Get out."
Thom: Pretty much. "I have someone that wants to show the house or see the house so ..." A majority of the people that are owned or occupied understand the fact that usually a real estate agent is scheduling several homes throughout a one, two hour time frame for their buyers to go through and so it'll be kind of that give them a call. "Hey, I'm going to be there." Sometimes, it's within an hour or sometimes it's three or four hours. Just letting them know, "Hey, we're going to come through at this time so is that okay?" You have to ask permission and to call first use the lock box.
Depending on the situation sometimes you can leave a message for a owner and just say, "Hey, let us know if it doesn't work for you for us to come through. Otherwise, we'll just show up at that time frame." That's the second level of access that's really easy and convenient for the buyer to be able to get in in their time frame but makes it a little bit tougher for the sellers.
Dave: If somebody's getting ready to sell, I'm going to assume ... Do you as a seller's agent, do you prep these people in that-
Dave: "You know what, there may be not just an agent from Core Group coming through but there may be an agent from badhousesales.com coming through and another agent coming through from Brand X." You may have three people through on a Saturday-
Thom: At varied times-
Dave: You need a contingency plan as to "Are you going to the library or the movies?"
Thom: Exactly. We always prep our sellers to talk about that and deal with that situation whatever it be. You may get a call like, "Hey, I'm going to come to your house at one," and then another one at three. What do you do in that time frame and stuff like that? We always prep the sellers so that they are understand what the situation's going to be, encourage them not to be present. Every once in a while, we'll have the sellers that like to be present during showings and so for a sale-
Dave: But that can be a problem.
Thom: That can be. Yeah, that can be because it's really super easy for sellers to be so passionate about their house that it makes buyers [crosstalk 00:06:45].
Dave: They want to go, "Why would you put those curtains up there?"
Thom: Yeah, exactly.
Dave: As a homeowner, it's like, "Hey,"-
Dave: "Why put those curtains up there?"
Thom: Exactly. It's so easy in human nature to be defensive about what you've done to your house and stuff like that. We highly encourage sellers to go for a walk, go to the park, go see a movie, like you said, and allow the buyers to have their time and their space in the house to visualize [crosstalk 00:07:14] it-
Dave: If you really want to sell it, you need to be out of it.
Thom: Exactly. Exactly.
Dave: That would be level two.
Dave: Level three would be ... Let's see. If there's a tenant in the house. If it's a home you own-
Thom: The 24 hour notice.
Dave: Is that what it is?
Thom: Yeah, yeah. Especially with tenants and stuff, it's the 24 hour notice to get into the house and this is where we run into some issues with some buyers that are like, "Oh my gosh. This house just came on the market. I going to see it right now. I going to go see it here in the next hour especially with the low inventory right now," and we have to say, "Oh gosh. I really would like to get you in but unfortunately they have tenants in the house and we have to see it tomorrow." That can be frustrating to a buyer to not be able to get in in the time that they would want to go see it.
With that being said, if you're out looking at properties and stuff like that, we always have the buyers that are like, "I want to go see that house. Is that house available?" When you see a street sign and that notification of that might have tenants in it because there's cars there and stuff or we're occupied so you might not be able to get in for a while. It's definitely one of those things that make it a little bit tougher. Not only that is sometimes it's hard to coordinate that with the tenants because not all tenants necessarily want the homeowner to sell their home.
Dave: So they may try to make it as inconvenient as possible. That is tough and then you mentioned the other one and that is where basically you are not allowed on the property to look at it unless you have the final offer. That's got to be the toughest.
Thom: Yeah. There are some homeowners that have tenants in place that they don't want to bother the tenant with a whole bunch of people coming through the house and so they will market their properties as "drive by only" so you can only view the outside as you're driving down the street. Then you have to write offers contingent on viewing the property during the inspection time frame so you don't really get to see the inside until you go through the inspection time frame and have a fully accepted offer and then you can get access to the house to go through it.
You can cancel a contract if you don't like what you see during that time frame but it makes it a little bit tricker, obviously, because of the fact that you just don't have any idea what the interior looks like. Those tend to fall towards lower prices and investors because investors are going to be the ones that are willing to do that and to take that risk and put that offer in and go see the property so ...
Dave: On the other side, we kind of touched on it already, if you are selling a property, you need to have a contingency plan put in place as to where you're going to go and, with any luck, it won't take Core Group two or three views to the house to get it sold but you might be at this for two or three weeks and you need to have a contingency plan as where are you going to go?
Thom: Exactly. Are you going to go to the mall, hang out for a little while while it's being shown? We've had sellers just take the dogs and go for a walk. [inaudible 00:10:26].
Dave: Take your laptop and go to a coffee shop.
Thom: Exactly. Exactly. There's just so many different options and stuff. But yeah, you have to have that contingency. You have to think about the fact that these people are going to be coming through your house and stuff like that.
Dave: To me, it's the downside of buying or selling a home, just working through the awkwardness of being in somebody else's home that you're, perhaps, making your own and/or selling and strangers coming through your home.
Dave: Very quickly if you are a seller ... We have just about a minute left here. You need to be very careful to make sure that valuables are put up, that your personal items are stowed away, not visible-
Thom: We always have that conversation. Make sure that you are locking up medications because, unfortunately, there are people who will pretend like they're home buyers the agents will take them out looking at properties and their whole goal is to rummage to the medicine cabinets and stuff like that. We try our best to qualify every single buyer to make sure that they're qualified but there are scam artists out there, unfortunately, that just know how to work the system-
Dave: And if you're a multiple listing you are open to everyone.
Thom: Correct so we always teach everybody to ... We ask sellers to put up your valuables. Put them in a safe, any prescriptions, things like that, make sure that they're put away and locked up so that people who are coming through the house don't walk away with it. It very rarely happens. I don't want people to think, "Oh my gosh." [crosstalk 00:11:53] something that happens very often.
Dave: It's good to be and truthfully if you're selling your home, you want it stripped down anyway. You want all your personal pictures and everything gone-
Thom: Tell everybody to minimize so that people can visualize their own stuff in the house so ...
Dave: Exactly. If you're interested in buying or selling a home and you've thought about it or you're in the process or maybe you had a house, own a home, and it's not on the market but you want to get back into the game, give Thom and his staff here a call at Core Group Realty. Interview, talk to him about the process and whether it's "Where do I go when I'm trying to sell my house?," or whatever the question may be. Your folks are here ready to answer those.
Thom: We're here and we're willing to answer whatever you have so for sure.
Dave: This is the Idaho Real Estate Buzz. We do this each and every Saturday at two o'clock. We appreciate you coming by and getting that information you need. You can go online coregrouprealty.com and check those out or call 933-7777 and talk to the customer care agent about homes that are for sale or whether you're looking for a home as well.
Thom, we'll do this again next Saturday.
Thom: Thank you.
Dave: This is the Idaho Real Estate Buzz on 580 KIDO.
Core Group Realty